Rupee gains against US dollar

Commentary

oi-Sneha

By Sneha B K

Published: Wednesday, March 13, 2013, 11:15 [IST]

The partially convertible Indian rupee gained 14 paise on Wednesday against dollar on the Interbank Foreign Exchange due to sustained selling of the US currency by exporters and banks.

However, negative trend seen in domestic market constrained the further rise in rupee.

The Indian rupee opened at 54.15 per dollar versus 54.18 on Tuesday. At 11.10 am IST rupee was seen trading flat at 54.14.

Strengthening of euro against the dollar overseas also supported the local currency, forex dealers said.

Rupee generally follow the footsteps of Euro, if euro is rising against the dollar, same trend can be visible in the Indian currency as well.

Weak rupee will put more pressure on the oil bill which will widen up. High oil import bill will further widen the gap between the imports and exports and thus raising trade deficit.

Meanwhile, the BSE was seen trading lower at lower by 54 points and the 50-share NSE was at down by 21 points.

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